After going through Financials of IRCTC, I can see that, there was Dip in revenues and PAT both in FY2018. Operating Profit dropped from 314 to 274, and Net Profit dropped from 229 to 221 (negligible). Dividend payout was also less in that year.
My understanding was that, Railway passengers in India generally goes up every year, and in 2018, there was no Pandemic, so what was the reason for this drop? Was it due to Fuel price rise or high inflation or any other specific reason?
This looks Cyclic business to me, though it is PSU Monopoly, sustainability of PAT growth may not be there.
Valuations seems to still on higher side though stock price has corrected a lot after October 2021. Initial enthusiasm about the stock is over but still consistency in PAT looks concern to me.
Government policies can also have impact on margins in future.
Stock is on my watchlist for some time.
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